MicroStrategy (MSTR) Q1 2025 Earnings
How Did MSTR Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +5.15%.
Did MSTR Beat Earnings? Q1 2025 Results
No. MicroStrategy reported Q1 2025 earnings of $-16.49 a share on May 1, 2025, missing the $-0.02 consensus estimate by 70,672.5%. Revenue was $111.1M against a $116.4M estimate.
Strategy (formerly MicroStrategy) delivered a bruising first quarter, posting an EPS loss of $16.49 against a consensus estimate of just $0.02, a miss of more than 70,000%, as the company absorbed a $5.91 billion unrealized fair value loss on its bitcoin holdings — the direct consequence of adopting the new ASU 2023-08 fair value accounting standard and bitcoin's slide to $82,445 by quarter-end. The resulting GAAP net loss totaled $4.22 billion. Revenue offered little relief, falling 3.6% year-over-year to $111.07 million and missing the $116.39 million consensus by 4.57%, with the legacy software segment dragged down by a 16.2% drop in product support revenue even as cloud subscription sales surged 61.6%. Shares dipped modestly in after-hours trading following the report. Looking ahead, CFO Andrew Kang flagged roughly $8.00 billion in anticipated Q2 fair value gains at current bitcoin prices near $97,300, and management raised its full-year BTC Yield target to 25% while unveiling a fresh $21.00 billion ATM equity offering to fund continued bitcoin accumulation — setting the stage for what investors will be watching closely when <a href="https://247wallst.com/investing/2025/10/30/live-earnings-coverage-of-strategys-q3-earnings/">results arrive next quarter</a>.
- Subscription services revenue grew 61.6% YoY as customers transition from product licenses to cloud subscriptions
- Record capital markets execution raised approximately $7.7 billion in Q1 net proceeds
- Acquired 80,715 bitcoins in Q1 2025 at an average purchase price of $94,922 per bitcoin
- Adoption of ASU 2023-08 fair value accounting resulted in $12.7 billion cumulative uplift to retained earnings
- BTC Yield of 11.0% in Q1, 13.7% YTD through April 28, 2025
“We successfully executed our record $21 billion common stock ATM, adding 301,335 BTC to our balance sheet while simultaneously achieving a 50% increase in MSTR share price during the same period. In Q1, we also broadened our capital base with two of the most successful preferred stock IPOs in a decade. Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value. With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space.”
MicroStrategy CEO, on the earnings call
What Was MicroStrategy's Outlook in Q1 2025?
Strategy is increasing its 2025 BTC Yield target from 15% to 25% and its 2025 BTC $ Gain target from $10 billion to $15 billion, reflecting strong year-to-date execution (13.7% BTC Yield and $5.8 billion BTC $ Gain achieved through April 28, 2025). The company announced a new $21 billion ATM common stock equity offering to fund continued bitcoin acquisitions. CFO Andrew Kang noted that at the current ~$97,300 bitcoin price, the company would expect to recognize approximately $8.0 billion in fair value gains thus far in Q2 2025. Approximately $20.9 billion remains available under the STRK preferred stock ATM and approximately $128.7 million under the October 2024 common stock ATM.
MSTR YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $111.1M | $115.2M | −3.6% |
| Gross Profit | $77.1M | $85.2M | −9.6% |
MSTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.